Foreign Trade Zone

Watson customers have the opportunity to significantly reduce operating costs through the activation of Foreign Trade Zone (FTZ) status. Granted through the Port of Los Angeles within the Watson subzone of FTZ 202, FTZ can be activated in approximately 12 million square feet of Watson facilities.

Companies can use the FTZ status to reduce operating costs for their manufacturing and inventory facilities. The non-privileged foreign position allows the duty rate for goods entering into an FTZ to be assessed according to the condition of the merchandise. In addition, with access to product for display or exhibition purposes without customs intervention or supervision, utilizing an FTZ can significantly minimize bureaucratic regulations.

The FTZ designation also offers operational benefits, which your company can take advantage of to gain a competitive edge in your market and save you time and money. Companies have better inventory control with lower customs supervision, and the duty payable on FTZ goods doesn’t need to be included in the calculation of insurable value, which lowers insurance costs. The FTZ may be utilized to examine product so it meets accurate specifications before duty is paid. Merchandise not meeting the requirements can then be repaired, re-exported, or destroyed without having to make duty payments. Furthermore, goods may be stored in an FTZ for unlimited periods, even if they are subject to U.S. quota constraints.

Certain types of merchandise can be imported without going through formal Customs entry procedures or paying import duties until the products are transferred from the FTZ sites for U.S. consumption. If the products never enter the U.S.’s commerce or are re-exported to other countries, then you are not required to pay duties on those items.

“With our business relationships in over 120 countries, we required a property that had the location and flexibility to meet the diverse range of needs of our customers. This move places us in an even stronger position to provide the high level of service and efficiency that our customers have come to expect from Agility both in North America and throughout the world.”